TripAdvisor Inc (TRIP)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,537,000 | 2,636,000 | 2,734,000 | 2,684,000 | 2,569,000 | 2,565,000 | 2,612,000 | 2,372,000 | 2,289,000 | 2,312,000 | 2,387,000 | 2,232,000 | 1,969,000 | 1,996,000 | 2,249,000 | 2,427,000 | 1,984,000 | 2,468,000 | 2,566,000 | 2,395,000 |
| Total stockholders’ equity | US$ in thousands | 871,000 | 823,000 | 781,000 | 808,000 | 861,000 | 813,000 | 796,000 | 767,000 | 789,000 | 794,000 | 779,000 | 785,000 | 886,000 | 908,000 | 912,000 | 1,027,000 | 1,161,000 | 1,648,000 | 1,575,000 | 1,507,000 |
| Financial leverage ratio | 2.91 | 3.20 | 3.50 | 3.32 | 2.98 | 3.15 | 3.28 | 3.09 | 2.90 | 2.91 | 3.06 | 2.84 | 2.22 | 2.20 | 2.47 | 2.36 | 1.71 | 1.50 | 1.63 | 1.59 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,537,000K ÷ $871,000K
= 2.91
The financial leverage ratio of TripAdvisor Inc. has shown fluctuations over the past eight quarters, ranging from 2.91 to 3.50. This ratio indicates the company's level of debt relative to its equity. A higher financial leverage ratio suggests that the company is more reliant on debt financing, which can magnify returns but also increase financial risk.
In the recent quarters, the financial leverage ratio has been on an upward trend, peaking at 3.50 in Q2 2023 before slightly declining in the subsequent quarters. This upward trend may indicate an increase in debt levels relative to equity, potentially signaling a higher risk for the company in terms of debt repayment obligations and overall financial stability.
It is essential for investors and stakeholders to closely monitor changes in the financial leverage ratio of TripAdvisor Inc. to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.
Peer comparison
Dec 31, 2023